11 January 2019

Tanzania: Panafrican Energy Strikes Gas Deal With Tpdc, Tanesco

Dar es Salaam — PanAfrican Energy Tanzania (Paet) has signed a short-term sales agreement with the Tanzania Petroleum Development Corporation (TPDC) and the Tanzania Electric Supply Company (Tanesco) for immediate supply of gas to the latter.

Under the agreement, PanAfrican Energy Tanzania will be required to supply up to 35 million standard cubic feet per day (MMscf/d).

These additional volumes are being processed and transported through TPDC's National Natural Gas Infrastructure (NNGI) and will allow Tanesco to generate increased and more stable power to meet emerging demands.

The company's commercial manager, Mr Bizimana Ntuyabaliwe, said the first gas flowed through the NNGI on December 24 and production averaged 20 MMscf/d in the first 10 days of operation.

Total additional gas sales, including that through the Songas gas processing and transportation system averaged 56 MMscf/d over the same period.

In a statement, Mr Ntuyabaliwe said this is an average of 44 MMscf/d in the third quarter.

"The agreement provides a mechanism for the parties to agree to one-month extension of a maximum term of six months and is expected to be superseded by a long-term agreement," he said.

"Paet is supplying these additional volumes from its existing wells. Two wells, SS-11 and SS12, are connected to the NNGI and SS-10 will be connected if required to meet the demand."

He said PAET is currently in the process of installing a refrigeration package in the Songas processing facility to ensure that gas can continue to be processed at the plant's capacity which will become operational by mid2019.

Mr David Roberts, Managing Director of PAET, commented "Together with TPDC and TANESCO we have focused our efforts to ensure the timely availability of Songo Songo natural gas to meet Tanzania's growing electricity and industrial demand".

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